State budgets MVR 500M for salaries of doctors and nurses

The state budget has allocated MVR 500 million to increase the salaries of doctors, nurses and health workers.

According to the budget for 2023, the amount allocated for salary increment will also include the cost of employee pensions. Last year, state budget allocated MVR 337 million for increment of teachers' salaries.

The Finance Ministry said the implementation of the pay equalization policy will cost about MVR 3 billion and all government employees will be paid under the new salary structure by 2025.

About 40 percent of state revenue is spent on salary expenses. While the state budget for next year is MVR 42.7 billion, of which about 70 percent is spent on staff salaries and administrative costs.

The 2023 budget book says that high expenditure on salaries will hamper investment in other development projects. The budget book also calls for a review of employee salaries in the future and set manageable salary targets.

The World Bank's "Maldives Public Expenditure Review" also expressed concern over government expenditure on salaries. The World Bank expects the new wage structure to further increase state expenditure.

Number of health workers expected to increase

Presenting the state budget to the Parliament, Finance Minister Ibrahim Ameer said that the health sector is one of the top priorities of the government after the Covid-19 pandemic. The minister said that MVR 5 billion will be spent on the entire sector next year.

"Development of five tertiary level hospitals is underway. Under this project, the quality of facilities and services provided of the five hospitals has already been improved," he said.

"The success of the Kulhudhuffushi Regional Hospital shows that these facilities can be operated independent of the central government. The budget of the five tertiary hospitals will be three times higher next year compared to 2018. With this, the number and quality of services provided will also increase", the minister said.

According to minister Ameer, the next batch employees to be brought under the pay harmonization plan will be health workers. President Solih also said, the budget plans to implement the policy of salary equalization in the health sector.

"The budget for 24-hour health centers in atolls will be increased. MVR 40.3 million will be budgeted to increase the number of health workers in the industry. The government's intention is to increase spending on the sector as the economy permits”, said minister Ameer.